The study has been carried out in Addis Ababa, Ethiopia. The influence of computerizedrnaccounting information system on audit functions and the major risk that are associated withrnauditing in such environment have been approved by the literature relating to both developedrnand other developing countries. However, the impact of IT-based accounting system on auditrnrisk has not been assessed in Ethiopia, particularly, in Addis Ababa. So, th is research fills thernexisting gap by evaluating empirically the influence of the utilization of ComputerizedrnAccounting Information System on the level of audit risk in the study site. The overoll objectivernof the study is to evaluate the impact of Computerized Accounting Information Systems on thernlevel of audit risk the case of external auditors engaged in Addis Ababa. It seeks to identifyrnwhether the level audit risk considerobly changed due to implementing this system by the auditrnfirm clients in the targeted area. The study used both quantitative and qualitative (mixed)rnapproach. The research finding tries to answer questions like whether audit risk was affectedrndue to implementation of IT-based accounting system. Self-administered questionnaire has beenrncorried out to meet the desired objective and to address the study problem. The major findingsrnof this study are severol variables altered audit risk related to implementing the system. Thesernare: lack of segregation of duties; lack of awareness of the issue, problems and risk associatedrnto the system; disappearance of audit trial; unsuitable audit approach; lack of IT training forrnboth client staffs and auditors in such environment; lack of back up data; complexity of thernsystem; absence of adopting advanced audit software; weakness of client internal controlrnsystem and audit firm financial cost concern.